[Federal Register Volume 76, Number 79 (Monday, April 25, 2011)]
[Notices]
[Pages 22868-22871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9965]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-829]


Certain Hot-Rolled Flat-Rolled Carbon-Quality Steel Products From 
Brazil: Final Results of Countervailing Duty Administrative Review

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On October 7, 2010, the Department of Commerce (Department) 
issued the preliminary results of administrative review of the 
countervailing duty order on certain hot-rolled flat-rolled carbon-
quality steel products (HRS) from Brazil for the period January 1, 
2008, through December 31, 2008. Based on the results of our 
verification and the analysis of the comments received, the Department 
has made certain revisions to the subsidy rates for the respondent, 
Usinas Siderurgicas de Minas Gerais (USIMINAS) and its subsidiary, 
Companhia Siderurgica Paulista (COSIPA). The final subsidy rate for the 
reviewed company is listed below in the section entitled ``Final 
Results of Review.''

DATES: Effective Date: April 25, 2011.

FOR FURTHER INFORMATION CONTACT: Myrna Lobo, Justin Neuman or Milton 
Koch, AD/CVD Operations, Office 6, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
2371, (202) 482-0486 and (202) 482-2584, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Since the issuance of Certain Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products From Brazil: Preliminary Results of Countervailing Duty 
Administrative Review, 75 FR 64700 (October 20, 2010) (Preliminary 
Results), the following events have occurred. The Department issued its 
third supplemental questionnaire to the Government of Brazil (GOB) and 
to USIMINAS/COSIPA on November 9, 2010. On the same day, the Department 
informed parties of the postponement of the briefing schedule. The GOB 
and USIMINAS/COSIPA filed their responses on November 23, 2010, and 
December 3, 2010, respectively. On December 13, 2010, the United States 
Steel Corporation (USS or petitioner) submitted factual information in 
rebuttal to information contained in USIMINAS/COSIPA's December 3, 2010 
questionnaire response. On January 6, 2011, the Department issued a 
fourth supplemental questionnaire to USIMINAS/COSIPA and the company 
submitted its response on January 19, 2011. On January 20, 2011, the 
Department placed on the record information from the investigation of 
cold-rolled steel and the prior administrative review of the instant 
order on HRS. See Memorandum to The File from Justin M. Neuman, 
Analyst, Certain Hot-Rolled Carbon Steel Flat Products from Brazil: 
Additional Programs Memorandum and Calculation Memorandum, Certain Hot-
Rolled Carbon Steel Flat Products from Brazil, dated January 20, 2011.
    On December 14, 2010, the Department extended the deadline for the 
final results from February 17, 2011 to April 18, 2011. See Certain 
Hot-Rolled Flat-Rolled Carbon-Quality Steel Products From Brazil: 
Extension of Time Limit for Final Results of Countervailing Duty 
Administrative Review, 75 FR 77828 (December 14, 2010).
    On January 21, 2011, USS submitted comments in light of the 
Department's planned verification. In accordance with section 782(i) of 
the Tariff Act of 1930, as amended (``the Act'') the Department 
conducted verification in Brazil of the questionnaire responses of 
USIMINAS/COSIPA from January 24 to January 27, 2011, and of one program 
of the GOB on January 28, 2011. See Memorandum to

[[Page 22869]]

The File from Myrna Lobo, International Trade Compliance Analyst, 
through Dana S. Mermelstein, Program Manager, Countervailing Duty 
Administrative Review of Certain Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products from Brazil: Verification of the Questionnaire Responses 
Submitted by Usinas Siderurgicas de Minas Gerais (USIMINAS) and 
Companhia Siderurgica Paulista (COSIPA), dated March 7, 2011; see also 
Memorandum to The File from Myrna Lobo, International Trade Compliance 
Analyst, through Dana S. Mermelstein, Program Manager, Countervailing 
Duty Administrative Review of Certain Hot-Rolled Flat-Rolled Carbon-
Quality Steel Products from Brazil: Verification of the Questionnaire 
Responses Submitted by the Government of Brazil, dated March 7, 2011.
    On March 3, 2011, the Department issued a post-preliminary analysis 
memorandum on the countervailability of the FINEM loan program. See 
Memorandum to Ronald K. Lorentzen, Deputy Assistant Secretary for 
Import Administration from Christian Marsh, Deputy Assistant Secretary 
for Antidumping and Countervailing Duty Operations, Countervailing Duty 
Administrative Review of Certain Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products from Brazil: Post-Preliminary Analysis Regarding the 
Provision of FINEM Loans, dated March 3, 2011 (Post-Preliminary 
Decision). On March 9, 2011, the Department notified parties of the 
briefing schedule, inviting comments on the Preliminary Results and the 
Post-Preliminary Decision. The Department received case briefs and 
rebuttal briefs from USS, Nucor Corporation (Nucor), a domestic 
interested party, and USIMINAS/COSIPA.\1\ Timely requests for a hearing 
were submitted by USS and Nucor; however, both parties subsequently 
withdrew their hearing requests.
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    \1\ The Department rejected USIMINAS/COSIPA's case brief 
received on March 16, 2011, because it contained untimely new 
factual information. See Letter to USIMINAS/COSIPA from the 
Department, Re: Countervailing Duty Administrative Review: Certain 
Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from Brazil 
(March 17, 2011). Subsequently, the Department allowed USIMINAS/
COSIPA to resubmit its case brief without the untimely factual 
information, which it received on March 18, 2011.
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Period of Review

    The period for which we are measuring subsidies, i.e., the period 
of review (POR), is January 1, 2008, through December 31, 2008.

Scope of the Order

    For purposes of this review, the products covered are certain hot-
rolled flat-rolled carbon-quality steel products of a rectangular 
shape, of a width of 0.5 inch or greater, neither clad, plated, nor 
coated with metal and whether or not painted, varnished, or coated with 
plastics or other non-metallic substances, in coils (whether or not in 
successively superimposed layers) regardless of thickness, and in 
straight lengths, of a thickness less than 4.75 mm and of a width 
measuring at least 10 times the thickness. Universal mill plate (i.e., 
flat-rolled products rolled on four faces or in a closed box pass, of a 
width exceeding 150 mm, but not exceeding 1250 mm and of a thickness of 
not less than 4 mm, not in coils and without patterns in relief) of a 
thickness not less than 4.0 mm is not included within the scope of the 
order.
    Specifically included in the scope are vacuum degassed, fully 
stabilized (commonly referred to as interstitial-free (``IF'')) steels, 
high strength low alloy (``HSLA'') steels, and the substrate for motor 
lamination steels. IF steels are recognized as low carbon steels with 
micro-alloying levels of elements such as titanium and/or niobium added 
to stabilize carbon and nitrogen elements. HSLA steels are recognized 
as steels with micro-alloying levels of elements such as chromium, 
copper, niobium, titanium, vanadium, and molybdenum. The substrate for 
motor lamination steels contains micro-alloying levels of elements such 
as silicon and aluminum.
    Steel products to be included in the scope of the order, regardless 
of HTSUS definitions, are products in which: (1) Iron predominates, by 
weight, over each of the other contained elements; (2) the carbon 
content is 2 percent or less, by weight; and (3) none of the elements 
listed below exceeds the quantity, by weight, respectively indicated: 
1.80 percent of manganese, or 1.50 percent of silicon, or 1.00 percent 
of copper, or 0.50 percent of aluminum, or 1.25 percent of chromium, or 
0.30 percent of cobalt, or 0.40 percent of lead, or 1.25 percent of 
nickel, or 0.30 percent of tungsten, or 0.012 percent of boron, or 0.10 
percent of molybdenum, or 0.10 percent of niobium, or 0.41 percent of 
titanium, or 0.15 percent of vanadium, or 0.15 percent of zirconium.
    All products that meet the physical and chemical description 
provided above are within the scope of the order unless otherwise 
excluded. The following products, by way of example, are outside and/or 
specifically excluded from the scope of the order:
    <bullet> Alloy hot-rolled steel products in which at least one of 
the chemical elements exceeds those listed above (including e.g., ASTM 
specifications A543, A387, A514, A517, and A506).
    <bullet> SAE/AISI grades of series 2300 and higher.
    <bullet> Ball bearing steels, as defined in the HTSUS.
    <bullet> Tool steels, as defined in the HTSUS.
    <bullet> Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 1.50 percent.
    <bullet> ASTM specifications A710 and A736.
    <bullet> USS Abrasion-resistant steels (USS AR 400, USS AR 500).
    <bullet> Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

                                                  [In percent]
----------------------------------------------------------------------------------------------------------------
      C           Mn (max)       P (max)       S (max)         Si            Cr            Cu         Ni (max)
----------------------------------------------------------------------------------------------------------------
   0.10-0.14           0.90         0.025         0.005     0.30-0.50     0.30-0.50     0.20-0.40          0.20
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Width = 44.80 inches maximum; Thickness = 0.063-0.198 inches; Yield Strength = 50,000 ksi minimum; Tensile
  Strength = 70,000-88,000 psi.

    <bullet> Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

[[Page 22870]]



                                                                      [In percent]
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        C                Mn            P (max)          S (max)             Si               Cr            Cu (max)         Ni (max)            Mo
--------------------------------------------------------------------------------------------------------------------------------------------------------
    0.10-0.16         0.70-0.90            0.025            0.006        0.30-0.50        0.30-0.50             0.25             0.20             0.21
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Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi Aim.

    <bullet> Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

                                                                      [In percent]
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       C              Mn            P (max)         S (max)           Si             Cr             Cu          Ni (max)    V (wt.) (max)     Cb (max)
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   0.10-0.14       1.30-1.80           0.025           0.005      0.30-0.50      0.50-0.70      0.20-0.40           0.20           0.10           0.08
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Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi Aim.

    <bullet> Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

                                                                      [In percent]
--------------------------------------------------------------------------------------------------------------------------------------------------------
   C (max)      Mn (max)       P (max)       S (max)      Si (max)      Cr (max)      Cu (max)      Ni (max)      Nb (min)         Ca            Al
--------------------------------------------------------------------------------------------------------------------------------------------------------
      0.15          1.40         0.025         0.010          0.50          1.00          0.50          0.20         0.005       Treated     0.01-0.07
--------------------------------------------------------------------------------------------------------------------------------------------------------
Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield Strength = 70,000 psi minimum for thicknesses <= 0.148 inches and 65,000 psi minimum for
  thicknesses > 0.148 inches; Tensile Strength = 80,000 psi minimum.

    <bullet> Hot-rolled dual phase steel, phase-hardened, primarily 
with a ferritic-martensitic microstructure, contains 0.9 percent up to 
and including 1.5 percent silicon by weight, further characterized by 
either (i) tensile strength between 540 N/mm2 and 640 N/mm2 and an 
elongation percentage >= 26 percent for thicknesses of 2 mm and above, 
or (ii) a tensile strength between 590 N/mm2 and 690 N/mm2 and an 
elongation percentage >= 25 percent for thicknesses of 2 mm and above.
    <bullet> Hot-rolled bearing quality steel, SAE grade 1050, in 
coils, with an inclusion rating of 1.0 maximum per ASTM E 45, Method A, 
with excellent surface quality and chemistry restrictions as follows: 
0.012 percent maximum phosphorus, 0.015 percent maximum sulfur, and 
0.20 percent maximum residuals including 0.15 percent maximum chromium.
    <bullet> Grade ASTM A570-50 hot-rolled steel sheet in coils or cut 
lengths, width of 74 inches (nominal, within ASTM tolerances), 
thickness of 11 gauge (0.119 inch nominal), mill edge and skin passed, 
with a minimum copper content of 0.20%.
    The merchandise subject to the order is classified in the 
Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 
7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 7208.25.30.00, 
7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 7208.27.00.30, 
7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 7208.37.00.30, 
7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 7208.38.00.90, 
7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 7208.40.60.30, 
7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 7208.90.00.00, 
7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 7211.14.00.90, 
7211.19.15.00, 7211.19.20.00, 7211.19.30.00, 7211.19.45.00, 
7211.19.60.00, 7211.19.75.30, 7211.19.75.60, 7211.19.75.90, 
7212.40.10.00, 7212.40.50.00, 7212.50.00.00. Certain hot-rolled flat-
rolled carbon-quality steel covered by the order, including: vacuum 
degassed, fully stabilized; high strength low alloy; and the substrate 
for motor lamination steel may also enter under the following tariff 
numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 
7226.91.70.00, 7226.91.80.00, and 7226.99.00.00. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise covered by the order is 
dispositive.

Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs by parties 
to this administrative review are addressed in the Issues and Decision 
Memorandum for the Final Results of the Countervailing Duty 
Administrative Review of Certain Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products from Brazil, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to Ronald 
K. Lorentzen, Deputy Assistant Secretary for Import Administration, 
dated concurrently with this notice (Issues and Decision Memorandum), 
and which is hereby adopted by this notice. The Issues and Decision 
Memorandum also contains a complete analysis of the programs covered by 
this review, the methodologies used to calculate the subsidy rates, and 
discusses any changes since the Preliminary Results and Post-
Preliminary Decision to the subsidy rates. A list of the comments 
raised in the briefs and addressed in the Issues and Decision 
Memorandum is appended to this notice. The Issues and Decision 
Memorandum is on file in the Central Records Unit (CRU), Room 7046 of 
the main Department building, and can be accessed directly on the Web 
at http://ia.ita.doc.gov/frn.

[[Page 22871]]

Changes Since the Preliminary Results

    Based on the results of verification, our consideration of 
information submitted by USIMINAS/COSIPA and the GOB in supplemental 
questionnaire responses received subsequent to the issuance of the 
Preliminary Results, and our analysis of comments received, we have 
made changes to the calculations of the Preliminary Results and Post-
Preliminary Decision. These changes are discussed in detail in the 
Issues and Decision Memorandum, and the Memorandum to the File from The 
Team, Calculations for the Final Results: Usinas Siderurgicas de Minas 
Gerais S.A. and Companhia Siderugica Paulista (USIMINAS/COSIPA), dated 
concurrently with this notice, a public version of which is on file in 
the CRU.

Final Results of Review

    In accordance with section 751(a)(1)(A) of the Act and 19 CFR 
351.221(b)(5), we calculated a net subsidy for USIMINAS/COSIPA, the 
only producer/exporter subject to this review, of 0.46 percent ad 
valorem. This rate is de minimis. See 19 CFR 351.106(c)(1).

Assessment and Cash Deposit Instructions

    The Department intends to issue assessment instructions to U.S. 
Customs and Border Protection (CBP) 15 days after the date of 
publication of these final results of review. The Department will 
instruct CBP to liquidate shipments of subject merchandise by USIMINAS/
COSIPA entered, or withdrawn from warehouse, for consumption on or 
after January 1, 2008, through December 31, 2008, without regard to 
countervailing duties. We will also instruct CBP to collect cash 
deposits for USIMINAS/COSIPA at the rate of 0.00 percent on all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of these 
final results of review. The cash deposit rates for all companies not 
covered by this review are not changed by the results of this review.

Return or Destruction of Proprietary Information

    This notice serves as a reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
the APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return or destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    We are issuing and publishing these final results in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: April 18, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.

Appendix I

List of Issues Addressed in the Issues and Decision Memorandum

Comment 1: Whether it is Appropriate to Apply Adverse Facts 
Available to Find the FINEM Loans Countervailable
Comment 2: Selection of an Appropriate Benchmark for BNDES Loans
Comment 3: Calculation of FOB Sales Value

[FR Doc. 2011-9965 Filed 4-22-11; 8:45 am]
BILLING CODE 3510-DS-P